Correlation Between Li Auto and 30321L2E1
Specify exactly 2 symbols:
By analyzing existing cross correlation between Li Auto and FG 515 07 JUL 25, you can compare the effects of market volatilities on Li Auto and 30321L2E1 and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in Li Auto with a short position of 30321L2E1. Check out your portfolio center. Please also check ongoing floating volatility patterns of Li Auto and 30321L2E1.
Diversification Opportunities for Li Auto and 30321L2E1
Pay attention - limited upside
The 3 months correlation between Li Auto and 30321L2E1 is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Li Auto and FG 515 07 JUL 25 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on FG 515 07 and Li Auto is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on Li Auto are associated (or correlated) with 30321L2E1. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of FG 515 07 has no effect on the direction of Li Auto i.e., Li Auto and 30321L2E1 go up and down completely randomly.
Pair Corralation between Li Auto and 30321L2E1
Allowing for the 90-day total investment horizon Li Auto is expected to generate 3.05 times more return on investment than 30321L2E1. However, Li Auto is 3.05 times more volatile than FG 515 07 JUL 25. It trades about 0.03 of its potential returns per unit of risk. FG 515 07 JUL 25 is currently generating about -0.4 per unit of risk. If you would invest 2,261 in Li Auto on September 13, 2024 and sell it today you would earn a total of 18.00 from holding Li Auto or generate 0.8% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 27.27% |
| Values | Daily Returns |
Li Auto vs. FG 515 07 JUL 25
Performance |
| Timeline |
| Li Auto |
| FG 515 07 |
Li Auto and 30321L2E1 Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Li Auto and 30321L2E1
The main advantage of trading using opposite Li Auto and 30321L2E1 positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Li Auto position performs unexpectedly, 30321L2E1 can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in 30321L2E1 will offset losses from the drop in 30321L2E1's long position.The idea behind Li Auto and FG 515 07 JUL 25 pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.| 30321L2E1 vs. Cleantech Power Corp | 30321L2E1 vs. Chemours Co | 30321L2E1 vs. Origin Materials | 30321L2E1 vs. Palomar Holdings |
Check out your portfolio center.Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Economic Indicators module to top statistical indicators that provide insights into how an economy is performing.
Other Complementary Tools
| Portfolio Volatility Check portfolio volatility and analyze historical return density to properly model market risk | |
| Fundamental Analysis View fundamental data based on most recent published financial statements | |
| Pair Correlation Compare performance and examine fundamental relationship between any two equity instruments | |
| Competition Analyzer Analyze and compare many basic indicators for a group of related or unrelated entities | |
| Global Correlations Find global opportunities by holding instruments from different markets |